Fair Housing
What is a fair housing audit and what does it reveal?
AA financial audit of a housing company
BA systematic testing of housing providers to detect and document discriminatory practices✓ Correct
CA government certification of fair housing compliance
DA survey of housing satisfaction
Explanation
A fair housing audit uses paired testers to systematically evaluate whether housing providers treat inquirers differently based on protected class characteristics. It reveals discriminatory patterns in advertising, showing properties, quoting rents/prices, or setting terms.
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Key Terms to Know
Fair Housing Act
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
SteeringAn illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
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